Google AdWords has a lot of metrics, and in fact you can even create your own.
But as we know, not every number has the same weight, and if everything is important, then nothing is important.
Not all the metrics are equally important, some are almost useless while some really need our focus. Those metrics that help us understand the progress against our stablished goals are called Key Performance Indicators (KPI).
Which metrics become KPIs depend on the type of account and vertical, instead of always being the same ones.
Usually the most common ones are associated with conversion, like conversion amount and cost per conversion. But sometimes the goal is to bring the biggest traffic volumen possible, so conversions aren’t that important.
Other times the AdWords campaign has a branding goal, therefore metrics like CTR and impressions become the KPIs.
For an e-commerce, ROI is the most common KPI, but sometimes it’s more important to maximize the income rather than ROI, specially if the lifetime value is good.
I love KPIs and I hate when there’s more talk about non-KPIs metrics in a clients meeting. Average position or CPC are worthless metrics and they don’t have a place in any serious meeting or talk. I’d like to think Avinash would agree with me!
What are your thoughts on KPIs vs. regular metrics? Enter your comment!
Thanks for reading!